NAVELLIER VARIABLE INSURANCE SERIES FUND, INC.
FUND PROFILE
February 27, 1998
Navellier & Associates, Inc.
Investment Adviser
For Fund information, call 1-800-887-8671
1. WHAT IS THE PORTFOLIO'S GOAL?
The Fund currently has authorized one series - the Navellier Growth Portfolio
("Growth Portfolio"). The investment objective of the Growth Portfolio is to
achieve long-term growth of capital primarily through investment in companies
with appreciation potential. It seeks to achieve this objective by investing in
equity securities traded in all United States markets including dollar
denominated foreign securities traded in United States markets.
2. HOW IS THE PORTFOLIO INVESTED?
The Growth Portfolio will invest up to 100% of its capital in equity securities
selected for their capital growth potential. Navellier & Associates, Inc. will
screen over 6,000 stocks, taking into account various factors and basing its
stock selection on its own model portfolio theory concepts. The Growth Portfolio
invests primarily in what Navellier & Associates, Inc. believes are undervalued
common stocks believed to have long-term growth potential.
3. WHAT ARE THE RISKS OF INVESTING IN THE PORTFOLIO?
The performance of the Growth Portfolio depends on the market value of its
holdings. Securities prices fluctuate in response to general political, economic
and market conditions as well as to the performance of individual companies.
Common stock prices can fluctuate dramatically in response to these factors.
Since many of the securities in which the Growth Portfolio may invest may have a
smaller number of shares to trade than more conventional companies, a liquidity
problem could be created by a lack of shares available for trade at a given
time. A high portfolio turnover rate may result in increased brokerage
commissions. Investments in foreign securities may involve considerations which
are not ordinarily associated with investing in domestic issuers. These
considerations include, among others, changes in currency rates, and the impact
of political, social or diplomatic developments. The Growth Portfolio uses
aggressive investment strategies and can experience substantial fluctuations so
that shares may at any time be worth more or less than you paid for them.
4. IS THE PORTFOLIO APPROPRIATE FOR YOU?
The Growth Portfolio is appropriate for investors who are willing to risk stock
market fluctuations in pursuit of long-term growth.
5. WHAT ARE THE PORTFOLIO'S EXPENSES?
The Growth Portfolio has no sales charge or fee for initial purchases,
reinvestment of distributions or redemptions. Portfolio operating expenses are
paid out of the Portfolio's assets and are not charged directly to the
Participating Insurance Company Separate Account ("Separate Account") or other
shareholders. Since the Growth Portfolio has no operating history, "Other
Expenses" and "Total Portfolio Operating Expenses" are based on estimated
amounts.
Annual Portfolio Operating Expenses/1/
(As a percentage of average net assets after applicable
expense reimbursements)
Management Fees 0.85%
12b-1 Fees None
Other Expenses/2/ 0.65%
-----
Total Portfolio Operating Expenses/1/ 1.50%
/1/Navellier & Associates, Inc. has agreed to reimburse expenses until
Total Portfolio Operating Expenses (including the advisory fee) are at or below
1.50%. Therefore, the amounts shown above reflect the anticipated expense
reimbursement. This undertaking is subject to termination at any time without
notice to shareholders after the expiration of twelve months from the date
shares of the Portfolio are first offered to the public. The estimated Total
Portfolio Operating Expenses, before any expense reimbursement, are 5%.
/2/The figure of 0.65% shown here includes the annual fee of 0.25% received
by Navellier & Associates, Inc. pursuant to the Administrative Services
Agreement.
EXAMPLE
1 Year 3 Year
------ ------
$17 $54
You could expect to pay this much in total expenses, maintaining an average
annual investment of $1,000. The example assumes a 5% annual return, expenses as
described above and reinvestment of all dividends and distributions. The example
reflects the current fee waiver arrangement and does not reflect additional
charges and expenses which are, or may be, imposed under the variable annuity
contracts ("VA Contracts") or variable life insurance policies ("VLI Policies")
or qualified pension and retirement plans ("Qualified Plans"). Such charges and
expenses are described in the Prospectus of the Separate Account or in the
Qualified Plan documents or other informational materials supplied by Qualified
Plan sponsors. The example should not be considered a representation of past or
future expenses.
6. HOW HAS THE PORTFOLIO PERFORMED?
The Growth Portfolio is newly organized and, therefore, has no history of
operations.
7. WHO MANAGES THE PORTFOLIO?
Navellier & Associates, Inc. acts as the Growth Portfolio's investment adviser.
It presently manages over $2.02 billion in investor funds. Its owner has been in
the business of rendering advisory services to significant pools of capital such
as retirement plans and large investors since 1987. Louis Navellier and Alan
Alpers are the Portfolio Managers involved in the day-to-day investment
activities of the Growth Portfolio. Mr. Navellier has been CEO and President of
Navellier & Associates, Inc. since 1988. Mr. Alpers has been an analyst and
portfolio manager for Navellier & Associates, Inc. since 1989 and has been
responsible along with Mr. Navellier for day-to-day management of over $100
million in individual accounts for Navellier & Associates, Inc.
8. HOW CAN YOU BUY SHARES?
Shares may be purchased or redeemed only through VA Contracts and VLI Policies
offered by Separate Accounts of Participating Insurance Companies or through
Qualified Plans. Individual investors may not purchase or redeem shares
directly. Please refer to the prospectus of the Separate Account or to the
Qualified Plan documents or other informational materials supplied by Qualified
Plan sponsors for instructions on purchasing a VA Contract or VLI Policy and on
how to select the Portfolios as investment options for a VA Contract, VLI Policy
or Qualified Plan.
9. HOW CAN YOU SELL SHARES?
Shares can be redeemed on any business day by transmitting a redemption order to
a Participating Insurance Company or Qualified Plan.
10. WHEN WILL YOU RECEIVE DISTRIBUTIONS?
The Growth Portfolio distributes dividends at least annually and distributes its
net realized capital gains, if any, at least annually in the form of shares of
the Portfolio. Such dividends and capital gain distributions are automatically
reinvested in additional shares of the Growth Portfolio and therefore are not
currently taxable. If, alternatively, an election is made on behalf of a
Separate Account of a Participating Insurance Company or Qualified Plan to
receive distributions in cash, this would result in a taxable distribution but
requests for cash distributions are not anticipated.
11. WHAT INVESTOR SERVICES ARE AVAILABLE?
The Fund provides semi-annual and annual reports, including financial
statements, regarding the Growth Portfolio. Toll-free access to the Growth
Portfolio is also provided.
THIS PROFILE CONTAINS KEY INFORMATION ABOUT THE PORTFOLIO. IF YOU WOULD LIKE
MORE INFORMATION BEFORE YOU INVEST, PLEASE CONSULT THE PORTFOLIO'S ACCOMPANYING
PROSPECTUS. ANNUAL AND SEMI-ANNUAL REPORTS FOR THE FUND MAY BE OBTAINED AT NO
COST BY CALLING 1-800-887-8671.
NAVELLIER VARIABLE INSURANCE SERIES FUND, INC.
ONE EAST LIBERTY, THIRD FLOOR
RENO, NEVADA 89501
PROSPECTUS DATED FEBRUARY 27, 1998
Navellier Variable Insurance Series Fund, Inc. (the "Fund") is an open-end
management investment company authorized to issue multiple series of shares,
each representing a portfolio of investments (individually, a "Portfolio" and
collectively, the "Portfolios"). The Fund currently has authorized one series -
the Navellier Growth Portfolio (the "Growth Portfolio"). There can be no
assurance that any Portfolio of the Fund will achieve its investment objective.
This Prospectus sets forth concisely the information about the Fund that a
prospective investor should know before investing. The Fund's shares are offered
only to (a) insurance companies ("Participating Insurance Companies") to fund
benefits under their variable annuity contracts ("VA Contracts") and variable
life insurance policies ("VLI Policies") and (b) tax-qualified pension and
retirement plans ("Qualified Plans"), including participant-directed Qualified
Plans which elect to make the Portfolios available as investment options for
Qualified Plan Participants.
Please read this Prospectus carefully and retain it for future reference. This
Prospectus should be read in conjunction with the prospectuses issued by the
Participating Insurance Companies for the VA Contracts and VLI Policies that
accompany this Prospectus or with the Qualified Plan documents or other
informational materials supplied by Qualified Plan sponsors. Additional
information about the Fund and the Growth Portfolio is contained in a Statement
of Additional Information which has been filed with the Securities and Exchange
Commission (the "SEC") and is available to investors without charge by calling
the Fund at 1-800-887-8671. The Statement of Additional Information, as amended
from time to time, bears the same date as this Prospectus and is incorporated by
reference in its entirety into this Prospectus.
This Prospectus does not constitute an offer to sell, or a solicitation of an
offer to buy, the securities of the Fund in any jurisdiction in which such sale,
offer to sell, or solicitation may not be lawfully made.
INVESTMENTS IN THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK. SHARES OF THE FUND ARE NOT FEDERALLY INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER
GOVERNMENTAL AGENCY. AN INVESTMENT IN THE FUND IS SUBJECT TO RISK THAT MAY CAUSE
THE VALUE OF THE INVESTMENT TO FLUCTUATE, AND WHEN THE INVESTMENT IS REDEEMED,
THE VALUE MAY BE HIGHER OR LOWER THAN THE AMOUNT ORIGINALLY INVESTED BY THE
INVESTOR.
LIKE ALL MUTUAL FUNDS, THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY
THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR
HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.
SHARES OF THE FUND ARE AVAILABLE AND ARE BEING OFFERED EXCLUSIVELY (i) AS A
POOLED FUNDING VEHICLE FOR LIFE INSURANCE COMPANIES WRITING ALL TYPES OF
VARIABLE LIFE INSURANCE POLICIES AND VARIABLE ANNUITY CONTRACTS AND (ii) TO
TAX-QUALIFIED PENSION AND RETIREMENT PLANS.
TABLE OF CONTENTS
Page
SUMMARY ..................................................................3
INVESTMENT OBJECTIVE AND POLICIES..........................................4
SPECIAL INVESTMENT METHODS AND RISKS.......................................5
INVESTMENT RESTRICTIONS....................................................6
RISK FACTORS...............................................................6
PERFORMANCE ADVERTISING....................................................8
MANAGEMENT OF THE FUND.....................................................9
EXPENSES OF THE FUND......................................................10
REPORTS AND INFORMATION...................................................10
DESCRIPTION OF SHARES.....................................................11
TAX STATUS, DIVIDENDS AND DISTRIBUTIONS...................................12
PURCHASES AND REDEMPTIONS.................................................12
ADDITIONAL INFORMATION....................................................13
SHAREHOLDER TRANSACTION EXPENSES
AND ANNUAL FUND OPERATING EXPENSES
Navellier
Growth
Portfolio
Shareholder Transaction Expenses/1/
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price)................ 0%
Maximum Sales Load Imposed on
Reinvested Dividends........................... None
Deferred Sales Load................................ None
Redemption Fees.................................... None
Exchange Fee....................................... None
Annual Portfolio Operating Expenses/2/
(As a percentage of average net assets after
applicable expense reimbursements)
Management Fees.................................... 0.85%
12b-1 Fees......................................... None
Other Expenses/3/.................................. 0.65%
Total Portfolio Operating Expenses/2/ ............. 1.50%
/1/ The above table of fees and other expenses is provided to assist you in
understanding the various potential costs and expenses that an investor in the
Portfolio may bear directly or indirectly.
/2/ Navellier & Associates, Inc. (the "Investment Adviser") has agreed to
reimburse expenses until Total Portfolio Operating Expenses (including the
advisory fee) are at or below 1.50%. Therefore, the amounts shown above reflect
the anticipated expense reimbursement. This undertaking is subject to
termination at any time without notice to shareholders after the expiration of
twelve months from the date shares of the Portfolio are first offered to the
public. The estimated Total Portfolio Operating Expenses, before any expense
reimbursement, are 5%. (See "Expenses of the Fund").
/3/ The figure of 0.65% shown here includes the annual fee of 0.25%
received by the Investment Adviser pursuant to the Administrative Services
Agreement. (See "Expenses of the Fund").
EXAMPLE:
The following example indicates the direct and indirect expenses an investor
(maintaining an average annual investment of $1,000) could expect to incur in a
single year, and three-year period respectively:
Growth Portfolio
One-Year...................... $ 17
Three-Year.................... $ 54
The foregoing example assumes (a) that an investor maintains an average of
$1,000 invested in the Growth Portfolio; (b) no sales load; (c) a 5% annual
return; (d) percentage amounts listed above for Annual Fund Operating Expenses
remain constant (for all periods shown above); and (e) reinvestment of all
dividends and distributions.
The foregoing example is based upon estimated Total Operating Expenses for the
Growth Portfolio, as set forth in the "Annual Operating Expenses" table above
and reflects the fee waiver/expense reimbursement arrangement in effect. THE
EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES.
ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. THE TABLE DOES NOT
REFLECT ADDITIONAL CHARGES AND EXPENSES WHICH ARE, OR MAY BE, IMPOSED UNDER THE
VA CONTRACTS, VLI POLICIES OR QUALIFIED PLANS. SUCH CHARGES AND EXPENSES ARE
DESCRIBED IN THE PROSPECTUS OF THE PARTICIPATING INSURANCE COMPANY SEPARATE
ACCOUNT OR IN THE QUALIFIED PLAN DOCUMENTS OR OTHER INFORMATIONAL MATERIALS
SUPPLIED BY QUALIFIED PLAN SPONSORS.
SUMMARY
The Fund
The Fund is an open-end management investment company which currently offers
shares of the Growth Portfolio. Additional Portfolios may be added to the Fund
in the future. This Prospectus will be supplemented or amended to reflect the
addition of any new Portfolios.
This summary, which provides basic information about the Growth Portfolio and
the Fund, is qualified in its entirety by reference to the more detailed
information provided elsewhere in this Prospectus and in the Statement of
Additional Information.
The Growth Portfolio is designed for long-term investors and is not intended as
a trading vehicle or to be a complete investment program for the investor. An
investment in the Growth Portfolio involves certain speculative considerations;
see "Risk Factors."
The Growth Portfolio employs aggressive investment strategies and can experience
substantial fluctuations, including declines, so that shares may be worth less
than when originally purchased.
Investment Adviser
The Investment Adviser administers the assets of the Growth Portfolio and
determines which securities will be selected as investments for the Growth
Portfolio. Louis Navellier, the President and CEO of the Investment Adviser,
refined the Modern Portfolio Theory investment strategy which is applied in
managing the assets of the Growth Portfolio. He sets the strategies and
guidelines for the Growth Portfolio and oversees the Portfolio Managers'
activities. Louis Navellier and Alan Alpers, who are the Portfolio Managers
involved in the day-to-day investment activities of the Growth Portfolio, head
up a team of investment professionals who assist in managing the Portfolio,
including research analysts Jon Tesseo, Shawn Price, Michael Borgen and Arnold
Langsen. Alan Alpers has been an analyst and portfolio manager for the
Investment Adviser since 1989 and has been responsible along with Mr. Navellier
for day-to-day management of over $100 million in individual accounts for the
Investment Adviser. The Investment Adviser receives an annual advisory fee,
equal to .85% of the average daily net asset value of assets under management,
for the Growth Portfolio. The advisory fee for the Growth Portfolio is payable
monthly, based upon a percentage of the Portfolio's average daily net assets.
This advisory fee paid to the Investment Adviser is higher than those generally
paid by most other investment companies. The Growth Portfolio is paying this
higher advisory fee based on its desire to retain the Investment Adviser's
specific application of Modern Portfolio Theory, its particular method of
analyzing securities and its investment advisory services.
Distribution of Shares
Navellier Securities Corp., One East Liberty, Third Floor, Reno, NV 89501 (the
"Distributor") acts as the principal underwriter for the shares of the Growth
Portfolio. The Distributor is a corporation wholly-owned by Louis Navellier, who
also owns 100% of the Adviser.
How to Invest
Individual investors may not purchase or redeem shares of the Growth Portfolio
directly; shares may be purchased or redeemed only through VA Contracts and VLI
Policies offered by separate accounts of Participating Insurance Companies or
through Qualified Plans, including participant-directed Qualified Plans which
elect to make the Portfolio an investment option for Qualified Plan
Participants. See "Purchases and Redemptions."
Risk Factors
Investment in the Growth Portfolio involves special risks and there can be no
guarantee of profitability. Some of those risks are briefly described here. Some
of the small cap securities which the Growth Portfolio may purchase may be
difficult to liquidate on short notice or, on occasion, only a portion of the
shares of a company in which the Investment Adviser intends to trade may be
available to be bought or sold by the Growth Portfolio. There can be no
assurance of profitability or of what the percentage of the Portfolio's total
annual operating expenses will be. Investments, if any, in securities of foreign
issuers may pose greater risks. The Investment Adviser's investment style could
result in above average portfolio turnover which could result in higher
brokerage expenses. As with any equity fund, the investments may decline,
resulting in a loss of value to the shareholder. (For more detail, see "Risk
Factors".)
INVESTMENT OBJECTIVE AND POLICIES
Investment Objective of the Navellier Growth Portfolio
The investment objective of the Growth Portfolio is to achieve long-term growth
of capital primarily through investment in companies with appreciation
potential. This investment objective is fundamental and may not be changed
without shareholder approval. The Growth Portfolio invests in equity securities
traded in all United States markets including dollar denominated foreign
securities traded in United States markets. It is a diversified portfolio,
meaning it limits its investment in the securities of any single company
(issuer) to a maximum of 5% of the Portfolio assets and further limits its
investments to less than 25% of the Portfolio's assets in any one industry
group. The Growth Portfolio seeks long term capital appreciation through
investments in securities of companies which the Investment Adviser feels are
undervalued in the marketplace. Navellier & Associates, Inc. is the Investment
Adviser for the Growth Portfolio. This Portfolio should not be considered
suitable for investors seeking current income.
Other Investments
The Growth Portfolio may, for temporary defensive purposes or to maintain cash
or cash equivalents to meet anticipated redemptions, also invest in debt
securities and money market funds if, in the opinion of the Investment Adviser,
such investment will further the cash needs or temporary defensive needs of the
Portfolio. In addition, when the Investment Adviser feels that market or other
conditions warrant it, for temporary defensive purposes the Growth Portfolio may
retain cash or invest all or any portion of its assets in cash equivalents,
including money market mutual funds. Under normal conditions, the Growth
Portfolio's holdings in such non-equity securities should not exceed 35% of the
total assets of the Portfolio. If the Growth Portfolio's assets, or a portion
thereof, are retained in cash or money market funds or money market mutual
funds, such cash will, in all probability, be deposited in interest-bearing or
money market accounts or in Rushmore's money market mutual funds. Rushmore Trust
& Savings, FSB is also the Fund's Transfer Agent and Custodian. Cash deposits by
the Fund in interest bearing instruments issued by Rushmore Trust & Savings
("Transfer Agent") will only be deposited with the Transfer Agent if its
interest rates, terms, and security are equal to or better than could be
received by depositing such cash with another savings institution. Money market
investments have no FDIC protection and deposits in Rushmore Trust & Savings
accounts have only $100,000 protection.
It is anticipated that all of the Growth Portfolio's investments in corporate
debt securities (other than commercial paper) and preferred stocks will be
represented by debt securities and preferred stocks which have, at the time of
purchase, a rating within the four highest grades as determined by Moody's
Investors Service, Inc. (Aaa, Aa, A, Baa) or by Standard & Poor's Corporation
(AAA, AA, A, BBB; securities which are rated BBB/Baa have speculative
characteristics). Although investment-quality securities are subject to market
fluctuations, the risk of loss of income and principal is generally expected to
be less than with lower quality securities. In the event the rating of a debt
security or preferred stock in which the Growth Portfolio has invested drops
below investment grade, the Growth Portfolio will promptly dispose of such
investment. When interest rates go up, the market value of debt securities
generally goes down and long-term debt securities tend to be more volatile than
short term debt securities.
In determining the types of companies which will be suitable for investment by
the Growth Portfolio, the Investment Adviser will screen over 6,000 stocks and
will take into account various factors and base its stock selection on its own
model portfolio theory concepts. The Growth Portfolio invests primarily in what
the Investment Adviser believes are undervalued common stocks believed to have
long-term growth potential. Stocks are selected on the basis of an evaluation of
factors such as earnings growth, expanding profit margins, market dominance
and/or factors that create the potential for market dominance, sales growth, and
other factors that indicate a company's potential for growth. The Growth
Portfolio will invest up to 100% of its capital in equity securities selected
for their capital growth potential. The Investment Adviser will typically (but
not always) purchase common stocks of issuers which have records of
profitability and strong earnings momentum. When selecting such stocks for
investment by the Growth Portfolio, the issuers may be lesser known companies
moving from a lower to a higher market share position within their industry
groups rather than the largest and best known companies in such groups.
SPECIAL INVESTMENT METHODS AND RISKS
"Short Sales Against the Box"
The Growth Portfolio is permitted to make short sales if at the time of the
short sale the Portfolio owns or has the right to acquire a security equal in
kind and amount to the security being sold short, at no additional cost. This
investment technique is known as a "short sale against the box."
In a short sale, the seller does not immediately deliver the securities sold and
is said to have a short position in those securities until delivery occurs. To
make delivery to the purchaser, the executing broker borrows the securities
being sold short on behalf of the seller. While the short position is
maintained, the seller collateralizes its obligation to deliver the securities
sold short in an amount equal to the proceeds of the short sale plus an
additional margin amount established by the Board of Governors of the Federal
Reserve. If the Fund engages in a short sale, the collateral account will be
maintained by the Fund's custodian. While the short sale is open, the Fund will
maintain, in a segregated custodial account, an amount of securities equal in
kind and amount to the securities sold short or securities convertible into or
exchangeable for such equivalent securities at no additional cost. These
securities would constitute the Fund's long position.
The Growth Portfolio may make a short sale against the box, when it believes
that the price of a security may decline, causing a decline in the value of a
security owned by the Portfolio (or a security convertible into or exchangeable
for such security), or when the Portfolio desires to sell the security it owns
at a current attractive price, but also wishes to defer recognition of gain or
loss for federal income tax purposes and for purposes of satisfying certain
tests applicable to regulated investment companies under the Internal Revenue
Code. In such a case, any future losses in the Growth Portfolio's long position
should be reduced by a gain in the short position. The extent to which such
gains or losses are reduced would depend upon the amount of the security sold
short relative to the amount the Growth Portfolio owns. There will be certain
additional transaction costs associated with short sales against the box, but
the Growth Portfolio will endeavor to offset these costs with income from the
investment of the cash proceeds of short sales.
INVESTMENT RESTRICTIONS
The Growth Portfolio can invest up to 5% of its assets in the securities of a
single issuer and can invest up to 25% of its assets in the securities of a
single industry. The Growth Portfolio may not make investments in real estate or
commodities or commodity contracts, including futures contracts, but may
purchase securities of issuers which deal in real estate or commodities. The
Growth Portfolio is also prohibited from investing in or selling puts, calls,
straddles (or any combination thereof). The Growth Portfolio is prohibited from
investing in derivatives. The Growth Portfolio may borrow money only from banks
for temporary or emergency (not leveraging) purposes provided that, after each
borrowing, there is an asset coverage in the Portfolio of at least 300%. The
Growth Portfolio will not purchase securities if the amount of borrowing by the
Portfolio exceeds 5% of total assets of the Portfolio. In order to secure any
such borrowing, the Growth Portfolio may pledge, mortgage, or hypothecate up to
10% of the market value of the assets of the Portfolio. The investment by the
Growth Portfolio in securities, including American Depository Receipts, of
issuers or any governmental entity or political subdivision thereof, located,
incorporated or organized outside of the United States is limited to 25% of the
net asset value of the Portfolio, provided that no such foreign securities may
be purchased unless they are traded on United States securities markets.
The Fund may not purchase for any Portfolio "restricted securities" (as defined
in Rule 144(a)(3) of the Securities Act of 1933) if, as a result of such
purchase, more than 10% of the net assets (taken at market value) of such
Portfolio would be invested in such securities nor will the Fund invest in
illiquid or unseasoned securities if as a result of such purchase more than 5%
of the net assets of such Portfolio would be invested in either illiquid or
unseasoned securities. The Board of Directors will determine whether these
securities are liquid and will monitor liquidity on an ongoing basis.
In addition to the investment restrictions described above, the investment
program of the Growth Portfolio is subject to further restrictions which are
described in the Statement of Additional Information. The restrictions for the
Growth Portfolio are fundamental and may not be changed without shareholder
approval.
RISK FACTORS
Lack of Operating History and Experience
The Growth Portfolio is newly organized and has no history of operations. The
Investment Adviser was organized on May 28, 1993 and has been managing the
assets of The Navellier Series Fund since January 3, 1994 and the publicly
invested assets of The Navellier Series Fund since April 1, 1994. The Investment
Adviser also manages the assets of The Navellier Performance Funds which went
effective December 28, 1995. Although the Investment Adviser sub-contracts a
substantial portion of its responsibilities for administrative services of the
Fund's operations to various agents, including the Transfer Agent and Custodian,
the Investment Adviser still has overall responsibility for the administration
of the Growth Portfolio and oversees the administrative services performed by
others as well as servicing shareholder's needs and, along with the Fund's Board
of Directors, is responsible for the selection of such agents and their
oversight. The Investment Adviser is also responsible for the selection of
securities for investment. None of the principals, officers, legal counsel, or
directors of the Investment Adviser (including such of those persons who are
also controlling persons of the Fund) had, before June 1993, ever registered,
operated, or supervised the operations of investment companies in the past, and
there is no assurance that their past business experiences or their experience
with The Navellier Series Fund or The Navellier Performance Funds will enable
them to successfully manage the assets of the Fund in the future. The owner of
the Investment Adviser has been in the business of rendering advisory services
to significant pools of capital such as retirement plans and large investors
since 1987.
The Investment Adviser presently manages over $2.02 billion in investor funds.
The owner of the Investment Adviser is also the owner of another investment
advisory firm, Navellier Fund Management, Inc., and controls other investment
advisory entities which manage assets and/or act as sub-advisors, all of which
firms employ the same basic modern portfolio theories and select many of the
same over-the-counter stocks and other securities which the Investment Adviser
intends to employ and invest in while managing the Portfolios of the Fund.
Because many of the over-the-counter and other securities which Investment
Adviser intends to, or may, invest in have a smaller number of shares available
to trade than more conventional companies, lack of shares available at any given
time may result in one or more of the Portfolios of the Fund not being able to
purchase or sell all shares which the Investment Adviser desires to trade at a
given time or period of time, thereby creating a potential liquidity problem
which could adversely affect the performance of the Fund portfolios. Since the
Investment Adviser will be trading on behalf of the various Portfolios of the
Fund in some or all of the same securities at the same time that the Investment
Adviser, Navellier Fund Management, Inc., other Navellier controlled investment
entities, The Navellier Series Fund and The Navellier Performance Funds are
trading, the potential liquidity problem could be exacerbated. In the event the
number of shares available for purchase or sale in a security or securities is
limited and therefore the trade order cannot be fully executed at the time it is
placed, i.e., where the full trade orders of the Investment Adviser, Navellier
Fund Management, Inc., The Navellier Series Fund, The Navellier Performance
Funds and other Navellier controlled investment entities and the Fund cannot be
completed at the time the order is made, the Investment Adviser, and the other
Navellier controlled investment entities will allocate their purchase or sale
orders in proportion to the dollar value of the order made by the other
Navellier entities, and the dollar value of the order made by the Fund. For
example, if the Investment Adviser, and Navellier Fund Management, Inc., each
place a $25,000 purchase order and Investment Adviser on behalf of the Fund
places a $50,000 purchase order for the same stock and only $50,000 worth of
stock is available for purchase, the order would be allocated $12,500 each of
the stock to the Investment Adviser, and Navellier Fund Management, Inc., and
$25,000 of the stock to the Fund. As the assets of each Portfolio of the Fund
increase, the potential for shortages of buyers or sellers increases, which
could adversely affect the performance of the various Portfolios. While the
Investment Adviser generally does not anticipate liquidity problems (i.e., the
possibility that the Portfolio cannot sell shares of a company and therefore the
value of those shares drops) unless the Fund has assets in excess of two billion
dollars (although liquidity problems could still occur when the Fund has assets
of substantially less than two billion dollars), each investor is being made
aware of this potential risk in liquidity and should not invest in the Fund if
it is not willing to accept this potentially adverse risk, and by investing,
acknowledges that it is aware of the risks.
An investment in shares of any Portfolio of the Fund involves certain
speculative considerations. There can be no assurance that any of a Portfolio's
objectives will be achieved or that the value of the investment will increase.
All Portfolios intend to comply with the diversification and other requirements
applicable to regulated investment companies under the Internal Revenue Code.
All securities in which any of the Fund's Portfolios may invest are inherently
subject to market risk, and the market value of the Fund's investments will
fluctuate. From time to time the Fund may choose to close a Portfolio or
Portfolios to new investors.
Investing in Securities of Foreign Issuers
Investments in foreign securities, particularly those of non-governmental
issuers, involve considerations which are not ordinarily associated with
investing in domestic issuers. These considerations include, among others,
changes in currency rates, currency exchange control regulations, the
possibility of expropriation, the unavailability of financial information, the
difficulty of interpreting financial information prepared under laws applicable
to foreign securities markets, the impact of political, social, or diplomatic
developments, difficulties in invoking legal process abroad, and the difficulty
of assessing economic trends in foreign countries. The Investment Adviser will
use the same basic selection criteria for investing in foreign securities as it
uses in selecting domestic securities as described in the Investment Objective
and Policies section of this Prospectus.
While to some extent the risks to the Fund of investing in foreign securities
may be limited since the Growth Portfolio may not invest more than 25% of its
net asset value in such securities and may only invest in foreign securities
which are traded in the United States securities markets, the risks nonetheless
exist.
Net Asset Value
The net asset value of the Growth Portfolio is determined by adding the values
of all securities and other assets of the Portfolio, subtracting liabilities,
and dividing by the number of outstanding shares of the Portfolio. (See
"Purchases and Redemptions - Valuation of Shares" and the Statement of
Additional Information.)
Portfolio Turnover
The annual rate of portfolio turnover for the Growth Portfolio is unknown since
it has no operating history and therefore no actual portfolio turnover rate
presently exists. The Investment Adviser estimates that the annual portfolio
turnover rate for the Growth Portfolio will not exceed 300%. However, this is
not a restriction on the Investment Adviser and if in the Investment Adviser's
judgment a higher annual portfolio turnover rate is required in order to attempt
to achieve a higher overall Portfolio performance, then the Investment Adviser
is permitted to do so. However, high portfolio turnover (100% or more) will
result in increased brokerage commissions, dealer mark-ups, and other
transaction costs on the sale of securities and on reinvestment in other
securities and could therefore adversely affect Portfolio performance.
Special Risk Considerations Relating to Securities of the Growth Portfolio
For a description of certain other factors, including certain risk factors,
which investors should consider relating to the securities in which the
Portfolio will invest, see "Investment Objective and Policies".
PERFORMANCE ADVERTISING
From time to time, a Portfolio may advertise its yield and total return. These
figures will be based on historical earnings and are not intended to indicate
future performance. No representation can be made regarding actual future yields
or returns. Yield refers to the annualized income generated by an investment in
the Portfolio over a specified 30-day period. The yield is calculated by
assuming that the same amount of income generated by the investment during that
period is generated in each 30-day period over one year and is shown as a
percentage of the investment.
The total return of a Portfolio refers to the average compounded rate of return
on a hypothetical investment for designated time periods (including but not
limited to the period from which the Portfolio commenced operations through the
specified date), assuming that the entire investment is redeemed at the end of
each period and assuming the reinvestment of all dividend and capital gain
distributions.
A Portfolio may periodically compare its performance to that of other mutual
funds tracked by mutual fund rating services (such as Lipper Analytical
Services, Inc.) or by financial and business publications and periodicals, broad
groups of comparable mutual funds, unmanaged indices which may assume investment
of dividends but generally do not reflect deductions for administrative and
management costs and other investment alternatives. A Portfolio may quote
services such as Morningstar, Inc., a service that ranks mutual funds on the
basis of risk-adjusted performance, and Ibbotson Associates of Chicago,
Illinois, which provides historical returns of the capital markets in the U.S. A
Portfolio may use long-term performance of these capital markets to demonstrate
general long-term risk versus reward scenarios and could include the value of a
hypothetical investment in any of the capital markets. A Portfolio may also
quote financial and business publications and periodicals as they relate to fund
management, investment philosophy, and investment techniques.
A Portfolio may quote various measures of volatility and benchmark correlation
in advertising and may compare these measures to those of other funds. Measures
of volatility attempt to compare historical share price fluctuations or total
returns to a benchmark while measures of benchmark correlation indicate how
valid a comparative benchmark might be. Measures of volatility and correlation
are calculated using averages of historical data and cannot be calculated
precisely.
MANAGEMENT OF THE FUND
The Board of Directors
The Fund's Board of Directors directs the business and affairs of each Portfolio
of the Fund as well as supervises the Investment Adviser, Distributor,
Accountant, Transfer Agent and Custodian, as described below.
The Investment Adviser
Navellier & Associates, Inc. acts as the Investment Adviser to the Growth
Portfolio. The Investment Adviser is registered as an investment adviser under
the Investment Advisers Act of 1940. The Investment Adviser is responsible for
selecting the securities which will constitute the pool of securities which will
be selected for investment for the Growth Portfolio. Pursuant to a separate
Administrative Services Agreement, the Investment Adviser provides the Growth
Portfolio with certain administrative services, including accounting and
bookkeeping services and supervising the Custodian's and Transfer Agent's
activities and the Growth Portfolio's compliance with its reporting obligations.
The Investment Adviser may contract (and pay for out of its own resources
including the administrative fee it receives) for the performance of such
services to the Custodian, Transfer Agent, or others, and may retain all of its
0.25% administrative services fee or may share some or all of its fee with such
other person(s). The Investment Adviser also provides the Growth Portfolio with
a continuous investment program based on its investment research and management
with respect to all securities and investments. The Investment Adviser will
determine from time to time what securities and other investments will be
selected to be purchased, retained, or sold by the Fund.
The Investment Adviser is owned and controlled by its sole shareholder, Louis G.
Navellier (a 100% stockholder). In 1987, Louis Navellier was in litigation with
a business partner and on the advice of his then legal counsel, as part of a
legal strategy, filed a personal bankruptcy petition in connection with that
litigation. The bankruptcy petition was voluntarily dismissed by Mr. Navellier
less than two months later with all creditors being paid in full. Louis G.
Navellier is an affiliated person of the Fund. The Investment Adviser is
registered as an investment adviser with the Securities and Exchange Commission
and with all states which require investment adviser registration. Louis
Navellier is registered as an investment adviser representative or agent in all
states requiring such registration. Louis Navellier and the Investment Adviser
without admitting liability, did in the past agree to a two-week suspension in
California and agreed to pay civil penalties to the States of California,
Connecticut, and Maryland for allegedly not being properly registered as an
investment adviser. Navellier Management, Inc., an affiliate of the Investment
Adviser, is also and has been since January 1994, the investment adviser to The
Navellier Series Fund, an open-end diversified investment company and to The
Navellier Performance Funds, an open-end investment company, since December
1995. Louis Navellier is, and has been, in the business of rendering investment
advisory services to significant pools of capital since 1987.
For information regarding the Fund's expenses and the fees paid to the
Investment Adviser see "Expenses of the Fund".
Control Persons and Principal Holders of Securities
On January 15, 1998, in order to fulfill the requirements of Section 14(a)(1) of
the 1940 Act, one hundred percent (100%) of the issued and outstanding shares of
the Growth Portfolio was subscribed to for purchase by Louis Navellier under an
agreement dated January 15, 1998. Such subscription was made for an aggregate of
$100,000 and was allocated 100% to the Growth Portfolio (to purchase 10,000
shares).
The Distributor
Navellier Securities Corp. acts as the Fund's Distributor and is registered as a
broker-dealer under the Securities Exchange Act of 1934 and is a member of the
National Association of Securities Dealers, Inc. The Distributor renders its
services to the Fund pursuant to a distribution agreement under which it serves
as the principal underwriter of the shares of each existing Portfolio of the
Fund. The Distributor receives no compensation for serving in such capacity.
Louis G. Navellier, an affiliate of the Fund and the Investment Adviser, is an
officer, director and sole shareholder of the Distributor.
The Custodian and the Transfer Agent
Rushmore Trust & Savings, FSB, 4922 Fairmont Avenue, Bethesda, Maryland, 20814,
telephone: (301) 657-1510 or (800) 622-1386, is Custodian for the Fund's
securities and cash and Transfer Agent for the Fund shares.
EXPENSES OF THE FUND
General
Each Portfolio is responsible for the payment of its own expenses. These
expenses are deducted from that Portfolio's investment income before dividends
are paid. These expenses include, but are not limited to: fees paid to the
Investment Adviser, the Custodian, the Transfer Agent, and the Accountant;
Directors' fees; taxes; interest; brokerage commissions; organization expenses;
securities registration ("blue sky") fees; legal fees; auditing fees; printing
and other expenses which are not directly assumed by the Investment Adviser
under its investment advisory or expense reimbursement agreements with the Fund.
General expenses which are not associated directly with a specific Portfolio
(including fidelity bond and other insurance) are allocated to each Portfolio
based upon their relative net assets. The Investment Adviser may, but is not
obligated to, from time to time advance funds, or directly pay, for expenses of
the Fund and may seek reimbursement of or waive reimbursement of those advanced
expenses.
Compensation of the Investment Adviser
The Investment Adviser receives an annual .85% fee for investment management of
the Growth Portfolio. The fee is payable monthly, based upon the Portfolio's
average daily net assets. This advisory fee is higher than those generally paid
by most other investment companies. The Investment Adviser also receives a 0.25%
annual fee for rendering administrative services to the Fund pursuant to an
Administrative Services Agreement and is entitled to reimbursement for operating
expenses it advances for the Fund.
Brokerage Commissions
The Investment Adviser may select selected broker-dealers to execute portfolio
transactions for the Portfolios of the Fund, provided that the commissions,
fees, or other remuneration received by such party in exchange for executing
such transactions are reasonable and fair compared to those paid to other
brokers in connection with comparable transactions. In addition, when selecting
broker-dealers for Fund portfolio transactions, the Investment Adviser may
consider the record of such broker-dealers with respect to the sale of shares of
the Fund or sale of VA Contracts and VLI Policies. (See the Statement of
Additional Information.)
REPORTS AND INFORMATION
The Fund will distribute to the shareholders of each Portfolio semi-annual
reports containing unaudited financial statements and information pertaining to
matters of each Portfolio of the Fund. An annual report containing financial
statements for each Portfolio, together with the report of the independent
auditors for each Portfolio of the Fund is distributed to shareholders each
year. Shareholder inquiries should be addressed to the Fund, at One East
Liberty, Third Floor, Reno, Nevada 89501; Tel: (800) 887- 8671, or to the
Transfer Agent, Rushmore Trust & Savings, FSB, 4922 Fairmont Avenue, Bethesda,
Maryland 20814, Telephone: (301) 657-1510 or (800) 622-1386.
DESCRIPTION OF SHARES
The Fund is a Maryland corporation organized on February 28, 1997. The Fund is
authorized to issue 500,000,000 shares of the Growth Portfolio and to create
additional portfolios of the Fund. Each share of the Growth Portfolio represents
an equal proportionate interest in that Portfolio with each other share. Shares
are entitled upon liquidation to a pro rata share in the net assets of the
Growth Portfolio available for distribution to shareholders. Shareholders have
no preemptive rights. All consideration received by the Fund for shares of any
Portfolio and all assets in which such consideration is invested would belong to
that Portfolio and would be subject to the liabilities related thereto.
The Fund reserves the right to create classes of shares.
Voting Rights
Each share held entitles the shareholder of record to one vote. Shareholders of
each Portfolio will vote separately on matters relating solely to it, such as
approval of advisory agreements and changes in fundamental policies, and matters
affecting some but not all Portfolios of the Fund will be voted on only by
shareholders of the affected Portfolios. Shareholders of all Portfolios of the
Fund will vote together in matters affecting the Fund generally, such as the
election of Directors or selection of accountants. As a Maryland corporation,
the Fund is not required to hold annual meetings of shareholders but shareholder
approval will be sought for certain changes in the operation of the Fund and for
the election of Directors under certain circumstances. In addition, a Director
may be removed by the remaining Directors or by shareholders at a special
meeting called upon written request of shareholders owning at least 10% of the
outstanding shares of the Fund. In the event that such a meeting is requested,
the Fund will provide appropriate assistance and information to the shareholders
requesting the meeting. Under current law, a Participating Insurance Company is
required to request voting instructions from VA Contract owners and VLI Policy
owners and must vote all shares held in the separate account in proportion to
the voting instructions received. Qualified Plans may or may not pass through
voting rights to Qualified Plan participants, depending on the terms of the
Qualified Plan's governing documents. For a more complete discussion of voting
rights, refer to the Participating Insurance Company separate account prospectus
or the Qualified Plan documents or other informational materials supplied by
Qualified Plan sponsors.
Conflicts of Interest. The Portfolios offers their shares to (i) VA Contracts
and VLI Policies offered through separate accounts of Participating Insurance
Companies which may or may not be affiliated with each other and (ii) Qualified
Plans including Participant-directed Plans which elect to make the Portfolios
available as investment options for Qualified Plan participants. Due to
differences of tax treatment and other considerations, the interests of VA
Contract and VLI Policy owners and Qualified Plan participants participating in
the Portfolios may conflict. The Board will monitor the Portfolios for any
material conflicts that may arise and will determine what action, if any, should
be taken. If a conflict occurs, the Board may require one or more Participating
Insurance Company separate accounts and/or Qualified Plans to withdraw its
investments in the Portfolios. As a result, the Portfolios may be forced to sell
securities at disadvantageous prices and orderly portfolio management could be
disrupted. In addition, the Board may refuse to sell shares of the Portfolios to
any VA Contract, VLI Policy or Qualified Plan or may suspend or terminate the
offering of shares of the Portfolios if such action is required by law or
regulatory authority or is in the best interests of the shareholders of the
Portfolios.
To mitigate the possibility that a Portfolio will be adversely affected by
personal trading of employees, the Fund and the Adviser have adopted a Code of
Ethics under Rule 17j-1 of the 1940 Act. This Code contains policies restricting
securities trading in personal accounts of the portfolio managers and others who
normally come into possession of information on portfolio transactions. This
Code complies, in all material respects, with the recommendations of the
Investment Company Institute.
TAX STATUS, DIVIDENDS AND DISTRIBUTIONS
Taxes
For a discussion of the tax status of a VA Contract, VLI Policy or Qualified
Plan, refer to the Participating Insurance Company separate account prospectus
or Qualified Plan documents or other informational materials supplied by
Qualified Plan sponsors.
Each Portfolio intends to qualify and elect to be treated as a regulated
investment company that is taxed under the rules of Subchapter M of the Internal
Revenue Code. As such, a Portfolio will not be subject to federal income tax on
its net ordinary income and net realized capital gains to the extent such income
and gains are distributed to the separate accounts of Participating Insurance
Companies and Qualified Plans which hold its shares. Because shares of the
Portfolios may be purchased only through VA Contracts, VLI Policies and
Qualified Plans, it is anticipated that any income, dividends or capital gain
distributions from the Portfolios are taxable, if at all, to the Participating
Insurance Companies and Qualified Plans and will be exempt from current taxation
of the VA Contract owner, VLI Policy owner, or Qualified Plan participant if
left to accumulate within the VA Contract, VLI Policy or Qualified Plan.
Internal Revenue Service Requirements
The Portfolios intend to comply with the diversification requirements currently
imposed by the Internal Revenue Service on separate accounts of insurance
companies as a condition of maintaining the tax-deferred status of VA Contracts
and VLI Policies. See the Statement of Additional Information for more specific
information.
Dividends and Distributions
Each of the Portfolios will declare and distribute dividends from net ordinary
income at least annually and will distribute its net realized capital gains, if
any, at least annually. Distributions of ordinary income and capital gains will
be made in shares of such Portfolios unless an election is made on behalf of a
separate account of a Participating Insurance Company to receive distributions
in cash. Participating Insurance Companies and Qualified Plan sponsors will be
informed at least annually about the amount and character of distributions from
the fund for federal income tax purposes.
PURCHASES AND REDEMPTIONS
Individual investors may not purchase or redeem shares of the Portfolios
directly; shares may be purchased or redeemed only through VA Contracts and VLI
Policies offered by separate accounts of Participating Insurance Companies or
through Qualified Plans, including participant-directed Qualified Plans which
elect to make the Portfolios investment options for Qualified Plan participants.
Please refer to the prospectus of the sponsoring Participating Insurance Company
separate account or to the Qualified Plan documents or other informational
materials supplied by Qualified Plan sponsors for instructions on purchasing a
VA Contract or VLI Policy and on how to select the Portfolios as investment
options for a VA Contract, VLI Policy or Qualified Plan.
Purchases. All investments in the Portfolios are credited to a Participating
Insurance Company's separate account immediately upon acceptance of the
investments by the Portfolios. Each Participating Insurance Company receives
orders from its contract owners to purchase or redeem shares of each Portfolio
on each day that the Portfolio calculates its net asset value (a "Business
Day"). That night, all orders received by the Participating Insurance Company
prior to the close of regular trading on the New York Stock Exchange Inc. (the
"NYSE") (currently 4:00 p.m., Eastern time) on that Business Day are aggregated,
and the Participating Insurance Company places a net purchase or redemption
order for shares of the Portfolios during the morning of the next Business Day.
These orders are executed at the net asset value (described below under "Net
Asset Value") next computed after receipt of such order by the Participating
Insurance Company.
Qualified Plan participants may invest in shares of the Portfolios through their
Qualified Plans by directing the Qualified Plan trustee to purchase shares for
their account. Participants should contact their Qualified Plan sponsors for
information concerning the appropriate procedure for investing in the
Portfolios. All investments in the Portfolios by Qualified Plans are credited to
the Qualified Plans immediately upon acceptance of the investments by the
Portfolios. All orders received from Qualified Plans are executed at the net
asset value next computed after receipt of such orders by the Portfolios.
The Portfolios reserve the right to reject any specific purchase order. Purchase
orders may be refused if, in the Investment Adviser's opinion, they are of a
size that would disrupt the management of the Portfolio. A Portfolio may
discontinue sales of its shares if management believes that a substantial
further increase in assets may adversely effect the Portfolio's ability to
achieve its investment objective. In such event, however, it is anticipated that
existing VA Contract owners, VLI Policy owners and Qualified Plan participants
would be permitted to continue to authorize investments in the Portfolios and to
reinvest any dividends or capital gains distributions.
Redemptions. Shares of a Portfolio may be redeemed on any Business Day.
Redemption orders which are received by a Participating Insurance Company or
Qualified Plan prior to the close of regular trading on the NYSE on any Business
Day and transmitted to the Fund or its specified agent during the morning of the
next Business Day will be processed at the next net asset value computed after
receipt of such order by the Participating Insurance Company or Qualified Plan.
Redemption proceeds will normally be wired to the Participating Insurance
Company or Qualified Plan the Business Day following receipt of the redemption
order by the Participating Insurance Company or Qualified Plan, but in no event
later than seven days after receipt of such order.
Valuation of Shares
The net asset value of the shares of each Portfolio of the Fund are determined
once daily as of 4 p.m. New York Time, on days when the New York Stock Exchange
is open for trading. In the event that the New York Stock Exchange or the
national securities exchanges on which Portfolio stocks are traded adopt
different trading hours on either a permanent or temporary basis, the Directors
of the Fund will reconsider the time at which net asset value is to be computed.
The net asset value is determined by adding the values of all securities and
other assets of the Portfolio, subtracting liabilities, and dividing by the
number of outstanding shares of the Portfolio. The price at which a purchase is
effected is based on the next calculation of net asset value after the order is
received.
In determining the value of the assets of each Portfolio, the securities for
which market quotations are readily available are valued at market value. Debt
securities (other than short-term obligations) are normally valued on the basis
of valuations provided by a pricing service when such prices are believed to
reflect the fair value of such securities. All other securities and assets are
valued at their fair value as determined in good faith by the Directors,
although the actual calculations may be made by persons acting pursuant to the
direction of the Directors.
ADDITIONAL INFORMATION
The Statement of Additional Information, available upon request, without charge
from the Fund, provides a further discussion of certain sections of the
Prospectus and other information which may be of interest to certain investors.
This Prospectus and the Statement of Additional Information do not contain all
the information included in the Registration Statement filed with the Securities
and Exchange Commission with respect to the securities being sold, certain
portions of which have been omitted pursuant to the rules and regulations of the
Securities and Exchange Commission. The Registration Statement, including the
exhibits filed therewith, may be examined at the office of the Securities and
Exchange Commission in Washington, D.C.
Statements contained in this Prospectus as to the contents of any contract or
other document referred to are not necessarily complete, and, in each instance,
reference is made to the Statement of Additional Information and the copy of
such contract or other document filed as an exhibit to the Registration
Statement of which this Prospectus forms a part, each such statement being
qualified in all respects by such reference.
NAVELLIER VARIABLE INSURANCE SERIES FUND, INC.
Investment Adviser
Navellier & Associates, Inc.
One East Liberty, Third Floor
Reno, NV 89501
(800) 887-8671
Distributor
Navellier Securities Corp.
One East Liberty, Third Floor
Reno, NV 89501
(800) 887-8671
Independent Auditors
Tait, Weller & Baker
Eight Penn Center Plaza, Suite 800
Philadelphia, PA 19103
Transfer Agent and Custodian
Rushmore Trust & Savings, FSB
4922 Fairmont Avenue
Bethesda, MD 20814
(800) 622-1386
Counsel
Blazzard, Grodd & Hasenauer, P.C.
943 Post Road East
Westport, CT 06880
(203) 226-7866
